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Week 4

The document discusses network analysis techniques for project management, specifically Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). Both techniques involve defining activities, determining relationships between activities, assigning time/cost estimates, and calculating the critical path - the longest sequence of activities that determines the project duration. The critical path cannot be delayed without delaying project completion. The techniques help answer questions about project timing, scheduling, resources, and costs.

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irqovi
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29 views

Week 4

The document discusses network analysis techniques for project management, specifically Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). Both techniques involve defining activities, determining relationships between activities, assigning time/cost estimates, and calculating the critical path - the longest sequence of activities that determines the project duration. The critical path cannot be delayed without delaying project completion. The techniques help answer questions about project timing, scheduling, resources, and costs.

Uploaded by

irqovi
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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NETWORK ANALYSIS

The two most common and widely used


project management techniques that can be
classified under the title of Network Analysis
are Programme Evaluation and review
Technique (PERT) and Critical Path Method
(CPM). Both were developed in the 1950's
to help managers schedule, monitor and
control large and complex projects. CPM
was first used in 1957 to assist in the
development and building of chemical
plants within the DuPont corporation.
Independently developed, PERT was

The PERT/CPM Steps


There are six stages common to both PERT and
CPM:
1. Define the project and specify all activities
or tasks.
2. Develop the relationships amongst activities.
Decide upon precedences.
3. Draw network to connect all activities.
4. Assign time and/or costs to each activity.
5. Calculate the longest time path through the
network: this is the "critical path".
6. Use network to plan, monitor and control

CPM
CPM: The critical path is that which has
zero slack, since delay on this activity will
mean a delay to the over all project.
Finding the critical path (step 5) is a major
in controlling a project. Activities on the
critical path represent tasks which, if
performed behind schedule, will delay the
whole project. Managers can derive
flexibility by identifying the non-critical
activities and replanning, rescheduling and
reallocating resources such as manpower
and finances within identified boundaries.

PERT and CPM differ slightly in their


terminology
and
in
network
construction.
However
their
objectives are the same and,
furthermore, their project analysis
techniques are very similar. The
major difference is that PERT
employs three time estimates for
each activity.

PERT and CPM can help to answer the


following questions for projects with
thousands of activities and events, both at
the beginning of the project and once it is
underway:
When will the project be completed?
What are the critical activities (i.e.: the tasks
which, if
delayed, will effect time for overall
completion)?
Which activities are non-critical and can run late
without
delaying project completion time?
What is the probability of the project being

At any particular time, is the project on


schedule?
At any particular time, is the money spent
equal to, less than or greater than the
budgeted amount?
Are there enough resources left to complete
the project
on time?
If the project is to be completed in a shorter
time, what
is the least cost means to accomplish this

Critical Path
Analysis

The objective of critical path analysis is to determine


times for the following:
ES = Earliest Start Time. This is the earliest time an
activity can be started, allowing for the fact that all
preceding activities have been completed.
LS = Latest Start Time. This is the latest time an
activity can be started without delaying the start of
following activities which would put the entire project
behind schedule.
EF = Earliest Finish Time. The earliest time an
activity can be finished.
LF = Latest Finish Time. The latest time that an
activity can finish for the project to remain on schedule.
S = Activity Slack Time. The amount of slippage in

Critical Path
Analysis
If ES and LS for any activity is
known, then one can calculate
values for the other three times as
follows:

EF = ES + t

LF = LS + t

S = LS - ES or S = LF - EF

Critical Path
Analysis

Analysis of the project normally


involves:
Determining the Critical Path. The
critical path is the group of activities
in the project that have a slack time
of zero. This path of activities is
critical because a delay in any
activity along it would delay the
project as a whole.
Calculating the total project
completion time, T. This is done by

Critical Path
Analysis

The steps in critical path analysis are


as follows:
Determine ES and EF values for all
activities in the project: the Forward
Pass through the network.
Calculate LS and LF values for all
activities by conducting a Backward
Pass through the network.
Identify the critical path which will be
those activities with zero slack (i.e.:
ES=LS and EF=LF).

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